UBS Raises Cisco (CSCO) Target Amid Strong AI Orders, Earnings Beat

Cisco Systems, Inc. (NASDAQ:CSCO) is one of the most undervalued cybersecurity stocks to buy now. On August 5, UBS kept its Neutral rating on Cisco Systems, Inc. (NASDAQ:CSCO), while increasing the price target from $70 to $74. The firm’s latest price target represents a 10% upside. UBS cited that increasing campus and data center demand could lead to an earnings beat in Q4.

UBS Raises Cisco (CSCO) Target Amid Strong AI Orders, Earnings Beat

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Cisco Systems, Inc. (NASDAQ:CSCO) reported Q4 FY 2025 (ended July 30) revenue of $14.67 billion, up 8% year-over-year, with full-year revenue reaching $56.65 billion, a 5.3% growth from FY 2024. The company’s The networking giant said that its AI infrastructure orders from webscale customers exceeded $2 billion for the fiscal year 2025, twice as much as it had projected. CEO Chuck Robbins cited innovation and execution as key drivers, positioning Cisco to lead the AI era through a shift in infrastructure architecture.

Cisco posted strong Q4 margins and EPS (non-GAAP) above guidance, with EPS at $0.99 per share, beating analysts’ estimates of $0.977 per share. For the whole year, EPS rose to $3.81, a paltry 2.1% growth. CFO Mark Patterson emphasized strategic investments and profitable growth ahead. For Fiscal year 2026, the company projected revenue between $59 billion and $60 billion, and that for EPS of $4.06 per share, reflecting continued momentum despite tariff impacts.

Cisco Systems, Inc. (NASDAQ:CSCO)  is a major player in cybersecurity, with offerings including a comprehensive suite of security solutions. The company is known for integrating security into its networking infrastructure and leveraging AI to enhance their security capabilities.

While we acknowledge the potential of CSCO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CSCO and that has a 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.